Gas fees on the Ethereum network have reached peak levels due to ERC-404 tokens
Gas fees on the Ethereum network have surged to levels not seen since March 2023. On February 9, Ethereum gas prices peaked at an average of 70 gwei, equivalent to $60 for a standard transaction. Peak gas costs even reached as high as 377 gwei, a level not seen since May 12, 2023.
Hype surrounding ERC-404 token standard drives increased trading activities
The primary catalyst for the heightened gas fees has been the excitement surrounding the ERC-404 token standard. Projects like Pandora and DeFrogs have contributed to over $600 million in trading volume in the past week alone. Pandora, in particular, has seen significant growth with a 6,100% increase in value and a trading volume exceeding $474 million.
ERC-404 aims to link NFTs with ERC-20 tokens
The ERC-404 token standard aims to connect ERC-721 non-fungible tokens (NFTs) with ERC-20 tokens. This enables the creation of fractionalized NFTs, allowing multiple users to collectively own and trade a single NFT.
Unofficial decentralized architecture gains attention despite lack of recognition
The unofficial decentralized architecture of ERC-404 has garnered significant attention within the crypto community. Although it is not yet recognized by the Ethereum foundations, there are rumors of a proposal to address this and unlock extra utility such as staking. The developers behind Pandora are actively working on optimizing gas costs associated with ERC-404 transactions.
Ethereum network activity surges, Buterin advocates for gas limit increase
The surge in Ethereum network activity on February 9 was largely driven by increased usage of the decentralized exchange protocol Uniswap. Projects like Pandora and DeFrogs, along with other ERC-404 initiatives, contributed to this heightened activity. Ethereum co-founder Vitalik Buterin has advocated for a gas limit increase, stating that it has not been increased for nearly three years. He suggested a modest increase to around 40 million, considering the network’s growth and adoption.
The post Ethereum Gas Fees Surge to 8-Month High As ERC-404 Tokens Take Off appeared first on Cryptonews.
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